Indexation Allowance

An allowance called indexation allowance was introduced from March 1982 to allow for inflation.

For disposals on or after 30 November 1993, the indexation allowance can only reduce or eliminate again and cannot create nor increase a loss.

Due to the introduction of taper relief, the indexation allowance is only available up to April 1998 for individuals. However, the indexation allowance continues to be available for companies.